Brent prices for the immediate month reached their lowest level since February last week, falling 13.7% and posting its biggest weekly decline since April 2020, while WTI lost 9.7%as concerns about a recession affecting oil demand weighed on prices.
“Last week’s price action left no doubt that concerns around demand in the face of a recession have the upper hand over fears around supply. You could even say that the war premium is has evaporated,” said PVM analyst Stephen Brennock.
Both contracts recouped some losses on Friday after job growth in the United States, the world’s top oil consumer, unexpectedly accelerated in July.
On Sunday, China also surprised markets with faster-than-expected export growth.
Chinathe world’s largest oil importer, iEntered 8.79 million barrels per day (bpd) of crude in July, up from a four-year low in June, but still 9.5% lower than a year earlier, according to customs data.
In Europe, Russian exports of crude oil and petroleum products continued to flow in the face of the imminent embargo of the European Union that will take effect on December 5.
US gasoline demand continues to weaken despite falling pump prices, and stockpiles are building.
Source: Ambito
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